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SF 5176

Cooperative development grant program establishment

2025-2026 Regular Session Introduced by Aric Putnam

Creates a state grant program up to $50,000 with a 1:1 match to help new Minnesota cooperatives start processing, marketing, or services.

Referred to Jobs and Economic Development
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Bill Summary · SF 5176

Summary: SF 5176 (2025-2026) — Cooperative Development Grant Program Establishment (Minnesota)

Purpose and intent

  • Establishes a state grant program to help finance the creation of new cooperatives that operate processing facilities or engage in marketing of products or services.
  • Aims to support cooperatives that serve Minnesota-based activities and patrons, strengthening local processing, marketing, and services.

Key provisions and changes

Creation of the program

  • Section 116J.408: The Minnesota Department of Employment and Economic Development (the commissioner) may establish and implement a Cooperative Grants program.
  • Purpose: Provide financial assistance to new cooperatives for startup and development activities related to processing, marketing, or service delivery within Minnesota.

Eligibility criteria for grant recipients

Eligible grantees must be a cooperative organized under one of Minnesota’s cooperatives statutes:
- Chapters 308A, 308B, or 308C.
- Must certify that control of the cooperative comes from patrons or individuals actively engaged in the cooperative’s activities.
- Must operate primarily to process, market, or provide services produced in Minnesota.
- Must operate primarily in service to Minnesota-based patrons.
- Must not allow non-patron voting rights (i.e., voting rights reserved for patrons).

Authorized uses of grants

  • Grants may be used for activities including:
    • Feasibility studies and marketing analyses.
    • Organizational development and administrative assistance.
    • Financing and management support for new cooperatives.
    • Product development and marketing planning.
    • Development of business and marketing plans.
    • Pre-design of facilities, including site analysis, bid specifications, preliminary blueprints/schematics.
    • Completion of purchase agreements and other necessary legal documents.

Grant amount and matching requirements

  • Grants may be awarded up to $50,000 per eligible grantee.
  • Grants must be matched dollar-for-dollar with other money or in-kind contributions (i.e., the applicant must provide an equal value in cash or in-kind support).

Who would be affected

Beneficiaries

  • New cooperatives organized under Minnesota cooperative statutes (308A, 308B, or 308C) that:
    • Are patron-controlled or controlled by individuals actively involved in the cooperative’s activities.
    • Focus on Minnesota-based processing, marketing, or service provision.
    • Maintain patron voting rights (no non-patron voting).

Partners and supporters

  • Potential partners providing matching funds or in-kind contributions to meet the grant match requirement.
  • State economic development agencies and staff responsible for administering the program.

Procedural and timeline aspects

  • Status: Introduced and referred to the Senate Jobs and Economic Development committee on April 20, 2026.
  • Implementation pathway: The bill would authorize the commissioner to establish the grant program and start accepting applications, subject to final passage and any administrative rules.
  • No specific grant cycle dates or reporting requirements are listed in the text provided; those would typically be defined in implementing rules and guidelines if the bill becomes law.

Observations

  • The program emphasizes patron-owned cooperatives with Minnesota-centric operations.
  • The matching funds requirement ensures commitment from grantees and partners.
  • The maximum grant amount ($50,000) suggests a focus on early-stage feasibility, development, and planning rather than large-scale capital investments.

If you’d like, I can compare this bill to existing Minnesota cooperatives statutes or provide a one-page briefing for stakeholders (pros, cons, and implementation considerations).

Compiled from official sources — confirm details with the bill’s official record.

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